In today’s real estate market, the amount of foreclosures is growing dramatically. Many people just cannot keep up with their mortgages and are losing their homes to the bank.
Others, however, are finding that purchasing these homes is a great opportunity to get properties for a lot less than in previous years.
There are so many different ways to purchase foreclosures. Here are three examples of ways you can purchase real estate, either before or after it has been lost to the bank:
- Purchasing Pre-foreclosures
- Purchasing Foreclosures at the Sheriff’s Sale
- Purchasing Post-foreclosures
Purchasing pre-foreclosures - is one that takes a lot of initiative on the part of the person planning to buy the real estate. Pouring through the newspapers, public records, and late notices that mortgage companies file at the courthouse showing that a person is behind on their mortgage, is the first step. Then, the purchaser has to go scouting these properties and find ones of interest. The last step is approaching the owners, oftentimes just by knocking on their door, and asking if they are willing to sell.
Purchasing foreclosures at the sheriff’s sale– is many times profitable, but can also be a nightmare. When you choose this option of buying real estate, you have no opportunity to inspect the properties being sold, you need to have the cash on hand to purchase at the sheriff’s sale, and there is still the possibility that you will not get the real estate if the current owner can find the money to make their mortgage current. When a person purchases foreclosures in this way, he or she really needs to know what they are doing in order for the transaction to make money, instead of losing it.
Purchasing post-foreclosures – occurs after the bank or mortgage company takes back the home from the owner who misses payments. These homes are sold much like normal real estate and the deals are not nearly no good. However, there are advantages to buying in this manner:
- The homes are vacant.
- The transaction is clear cut and clean, just like purchasing other real estate.
- The title of the property is clear.
In all cases of buying foreclosures, do not take the property at face value. Dingy paint or dirty carpets are never more important than a solid, sound home. If the home is in good working condition, the “cosmetic” can be fixed relatively inexpensively and the real estate may be a very good buy.
